Salonga v. Warner, Barnes & Co.

88 Phil 125 | G.R. No. L-2246

January 31, 1951
On the matter of Real Party-in-interest (III.C.1)
Ponente: Justice Bautista Angelo

Relevant Facts:
Westchester Fire Insurance Company of New York entered into a
contract with Gamboa whereby said company insured one case of
rayon yardage which said Gamboa shipped from San Francisco,
California. The insurance company undertook to pay to the sender or
her consignee the damages that may be caused to the goods shipped
subject to some conditions. There was a shortage in shipment which
lead to a claim of P717.82 by plaintiff filed against Warner, Barnes &
Co., Ltd., as agent of the insurance company in the Philippines. The trial
court rendered in favor of plaintiff and was appealed to the Supreme
Court.

Issue: Whether the defendant is the real party in interest against whom
the suit should be brought.

Ruling: Complaint is dismissed.

Ratio Decidendi:
The defendant did not enter into any contract either with the
plaintiff or his consignor. The real party in interest is the party who
would be benefited or injured by the judgment, or the "party entitled
to the avails of the suit”. The defendant is a settlement and adjustment
agent of the foreign insurance company. His functions are merely to
settle and adjusts claims in behalf of his principal and does not assume
any personal liability. The recourse of the insured is to press his claim
against the principal. An action based upon a right of action belonging
to a principal cannot be brought in the name of his representative.